L Brands Inc. /zigman2/quotes/202062875/compositeLB+4.65%
stock soared 8.5% in Friday trading after it was upgraded to buy from neutral at Bank of America based on the strength of the Bath & Body Works beauty business. L Brands' price target was lifted to $25 from $21. "Every year, skeptics doubt the sustainability of this concept but Bath & Body Works has consistently exceeded expectations and now contributes 92% of total company EBIT," analysts led by Lorraine Hutchinson wrote. Bank of America doesn't think a Victoria's Secret turnaround will happen anytime soon, but the holidays could determine whether the company needs to reconsider the lingerie brand's image and marketing message, which company executives have admitted needs a refresh. Bank of America also raises the possibility of a spinoff, which analysts have discussed in recent weeks. Analysts suggest that Victoria's Secret could bring back the private label swim collection, shutter some stores, and add some diversity to the board. The L Brands board has an average tenure of 15.5 years and average age of 69. "This is one of the oldest boards in our coverage ratio," analysts wrote. With the addition of two women in 2019, the gender ratio became 42% female versus 25% previously. L Brands was put on the Wells Fargo "top picks" list, with analysts seeing the "opportunities" for Victoria's Secret to catch up with the consistent growth at Bath & Body Works. L Brands shares have sunk 28.2% over the past year while the S&P 500 index /zigman2/quotes/210599714/realtimeSPX+2.62%
has gained 32.6%.

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